Of all the cities analyzed, Madrid boasts the highest average office occupancy rate (65%), overtaking Paris and London’s West End (62%) in this regard. At the same time, the London borough has seen the largest increase in this indicator in the last six months: from 50% to 62%. According to Savills, this is partly due to the activity of companies in the financial sector. The average office occupancy rate for companies in this industry (excluding insurance) in central London has already reached 63%, mainly due to their preferred four-day office model. Many organizations in the private equity and investment management sectors prefer West End locations, which has contributed to the rapid growth of this rate in this part of the city. Warsaw also saw a significant increase in office occupancy since February, from 46% to 55%, with tenants increasingly interested in locations in the COB.

“The hybrid work model remains leading the way for the capital’s office market, and all indications are that it will stay with us for a long time to come. However, it is worth noting the significant discrepancy between the preferences of organizations and the expectations of employees, which lead to the fact that the working model is still evolving in many companies. Tenants are undoubtedly striving for even greater cost optimization, and companies deciding to relocate are very often opting for a reduction in occupied space in exchange for a higher standard in centrally located offices.”-

Karol Grejbus, director in the tenant representation department at Savills, comments.

As Savills experts note, average occupancy rates on Tuesdays and Wednesdays are currently close to the so-called normal level of around 70%, and this means that companies should be cautious when planning their leasing strategies and take into account the need for sufficient space on the days when most employees come to the office.

“Our latest data shows that average occupancy rates in major European cities have increased on all weekdays, but it is worth considering the highest occupancy days in particular, as they are the ones to determine the minimum demand for office space. It is crucial to design the office to meet the diverse needs of employees, who should be provided with the right working conditions suited to performing different tasks throughout the day. This, in turn, increases the importance of common spaces in the office, which employees expect much more from so that they can have a positive impact on work efficiency. Demand for high-standard offices in mixed-use and well-connected facilities continues to grow, and delays in new projects and an insufficient supply of top-class space will cause tenants to compete among themselves for the best locations, and this will translate into higher rents.” –

Rebecca Webb, director, international tenant advisory EMEA, Savills, comments.

“We anticipate that as a new balance between the expectations of companies and employees is established, average office occupancy rates in Europe will begin to stabilize at around 60%, albeit varying by city and sector. Positive factors for European cities with high rates, i.e. Madrid and Paris, include a high percentage of people living in the center, good transportation infrastructure and lower public transportation costs.” –

Adds Mike Barnes, Associate Director, Research Europe, Savills.